July 13, 2015

The Obama administration has released a new proposal to resolve a conflict with religious institutions that object in principle to the mandated coverage of contraceptives in the "Obamacare" health-insurance program.

The new policy would allow qualified religious institutions to opt out of the contraceptive coverage. Female employees at these organizations would then receive contraceptive coverage directly from insurers, without any direct payment by the employer. However, the new proposal still requires the religious institutions to notify the Department of Health and Human Services that they are opting out, thus triggering the coverage for their employees. To date, religious institutions have objected to that provision, saying that it requires them, in effect, to take an action that provides the objectionable coverage.

Following up on a Supreme Court ruling that privately owned corporations must be allowed to uphold the religious principles of their owners, the Obama administration has also offered an opt-out provision for corporations. The proposed rules would apply only to corporations held by no more than five owners, and not traded on public exchanges.